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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle C--Provisions Relating to Software and Technology

P. L. 116-

House Conference Report   116-617

(1) identify policies and procedures protecting defense-sensitive United States intellectual property, technology, and other data and information, including hardware and software, from acquisition by the government of China; and

(2) to the extent that the Secretary determines that such policies and procedures are insufficient to provide such protection, develop additional policies and procedures.

(b) Matters Considered.--In developing the policies and procedures under subsection (a), the Secretary shall take the following actions:

(1) Establish and maintain a list of critical national security technology that may require certain restrictions on current or former employees, contractors, or subcontractors (at any tier) of the Department of Defense that contribute to such technology.

(2) Review the existing authorities under which employees of the Department of Defense may be subject to post-employment restrictions with foreign governments and with organizations subject to foreign ownership, control, or influence.

(3) Identify additional measures that may be necessary to enhance the authorities described in paragraph (2).

(c) Post-employment Matters.--The Secretary shall consider mechanisms to restrict current or former employees of contractors or subcontractors (at any tier) of the Department of Defense that contribute significantly and materially to a technology referred to in subsection (b)(1) from working directly for companies wholly owned by the government of China, or for companies that have been determined by a cognizant Federal agency to be under the ownership, control, or influence of the government of China.

The Senate amendment contained a provision (sec. 891) that would require the Secretary of Defense to establish, enforce, and track actions being taken to protect defense-sensitive United States intellectual property, technology, and other data and information, including hardware and software, from acquisition by China. Additionally, the provision would require the Secretary to generate a list of critical national security technology and provide for mechanisms to restrict employees or former employees of the defense industrial base from working directly for companies wholly owned by, or under the direction of, the Government of the People's Republic of China.

The House bill contained no similar provision.

The House recedes with a clarifying amendment.

Senate Committee Report 116-236 to Accompanying S. 4049

Safeguarding defense-sensitive United States intellectual property, technology, and other data and information (sec. 891)

The committee recommends a provision that would require the Secretary of Defense to establish, enforce, and track actions being taken to protect defense-sensitive United States intellectual property, technology, and other data and information, including hardware and software, from acquisition by China. Additionally, the provision would require the Secretary to generate a list of critical national security technology and provide for mechanisms to restrict employees or former employees of the defense industrial base from working directly for companies wholly owned by, or under the direction of, the government of the People's Republic of China.

The National Defense Strategy establishes that long-term strategic competition with near-peer adversaries is one of the two ``principal priorities'' of the Department of Defense. The committee recognizes that the protection of defense-sensitive United States intellectual property, technology, and other data and information from acquisition by China or other potential adversaries is vital to the national security of the United States. It also recognizes that the Government of the People's Republic of China maintains, as a national priority, an unequalled global program of theft and other misappropriation of intellectual property and technology and unacceptable requirements for transfer of intellectual property, technology, and other data and information, with particular attention to items and matters of national security and economic importance.